Advanced Micro Devices (NYSE: AMD) lowered its outlook for 1Q08 due to lower than expected sales across all business lines.
AMD also indicated it plans to reduce 10% of its headcount by the end of 3Q08.
Jeffries & Co says: "The difficult transition to 45-nanometer geometry and large net debt position cause us to maintain our Hold rating and $7 price target."
Abu Dhabi purchased a $622 million dollar stake in AMD in November 2007.
AMD overall option implied volatility of 73 is above its 26-week average of 67 according to Track Data, suggesting larger price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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